Sounds Profitable

Building an app for podcast listeners is a tough sell in this world where Spotify and Apple are so dominant. But Realm has been in the game for a while and have a dedicated fan base – both of the app they launched years ago and the content that’s contained therein. In this episode, Bryan Barletta speaks with Rachel Prisock, head of data and engineering at Realm, about building, maintaining, and utilizing the app as an audience engagement and measurement tool. Listen to learn about: How Realm got its start in podcasting Why the app model works for Realm (but isn’t as successful for other publishers) How Realm might evolve Realm’s strategy for partner content The role of the Super Fan in their strategy Links: Bryan Barletta Arielle Nissenblatt Rachel Prisock Realm The Download Sounds Profitable: Narrated Articles SquadCast Credits: Hosted by Bryan Barletta and Arielle Nissenblatt Sounds Profitable Theme written by Tim Cameron Edited by Reece Carman and Ron Tendick Assembled by Spooler Media Hosted on Omny Studios Additional help from Gavin Gaddis See omnystudio.com/listener for privacy information.

This week: Sounds Profitable publishes brand safety and suitability study, Edison publishes top podcast networks by reach, Libsyn unveils November 2022 podcast advertising rates, Spotify unveils its top five podcasts in Wrapped, and GroupM and Magna predict a ‘durable’ ad market next year.  Sounds Profitable publishes brand safety and suitability study Safe and Sound Manuela: We begin today’s show with something close to home. Yesterday Sounds Profitable debuted its latest research project, Safe and Sound. The first-ever study of brand safety and suitability from the listener’s perspective.  “Safe and Sound surveyed a representative sample of 1093 podcast listeners to find out what they consider ‘offensive,’ what they are tolerant of, and how they view the brands that support podcast content when it pushes their boundaries.”  The study delivers a wide range of findings, ranging from bombshells like the idea political ads are unpopular with audiences - regardless of political party - to taking the temperature of what audiences consider most offensive. Spoiler alert: people dislike racist language.  That said, it looks like offensive content might not be as toxic to a podcast’s overall image as initially assumed. When asked how they felt about brands that advertise or sponsor a podcast where a guest or host said something offensive or uncomfortable, an average of 30% of respondents said their feelings about the brands had not been changed.  When presented with the situation of a podcast someone regularly enjoys having an uncomfortable or offensive episode, 49% of respondents said they would stop listening to that particular episode but continue listening in general, while 31% said they’d continue listening to the outlier episode regardless.  The data suggests podcast-listening audiences take a more holistic approach to offensive content on podcasts they already have a relationship with. In general, listeners appear to not hold a single out-of-character episode against a podcast they’re familiar with.  Edison Top Podcast Networks Shreya: This Tuesday Edison Research published the Q3 edition of U.S. Top Podcast Networks, by Reach. Listeners of The Download might remember Spotify took the lead back in Q2, just edging out SiriusXM Media. This last quarter SiriusXM has overtaken Spotify and returned to the top, leaving the top five at SiriusXM Media, Spotify, iHeartRadio, Audioboom, and NPR, with Wondery eyeing the top five from sixth place. From the Edison blog post: “Within the top ten, the biggest jump in rank goes to Wondery/Audible/Amazon Music, up two rank positions, propelled in part by their acquisitions of major shows like Morbid and My Favorite Murder. Bubbling below the top ten, WarnerMedia gained three levels in rank, now up to 14th.“ Once more SiriusXM takes the top spot, but not without Spotify having broken their streak of having been at the top since Edison first started publishing top network by reach reports.  Libsyn Unveils November 2022 Podcast Advertising Rates Manuela: Continuing our unplanned theme of discussing data, let’s take a moment to talk about CPM.  Last Thursday Libsyn published the November edition of their monthly CPM rate roundup from AdvertiseCast.  “The Company releases the figures to empower the podcaster and advertiser communities to readily monitor market pricing and provide greater insight into podcasting advertising as a monetization vehicle. The data is derived from actual sales data across AdvertiseCast’s network of over 3,000 shows, including more than 225 exclusive podcasts.” Rates are continuing to increase, little by little. Last month the average CPM rate was $24.75 for a sixty-second ad spot, up 78 cents from the October average and a 6% year-over-year increase from November 2021. The report notes that the lower end of the spectrum contains fiction, television, and news content, averaging in the low twenties. On the high side, however, a familiar face for listeners of The Download. We’ve covered the meteoric rise of Kids & Family podcast content multiple times and its popularity continues into this November. The top four highest-earning categories in November are:  Technology and Health & Fitness, tied for third place at $26. Science at $27. And at the top of the leaderboard, Kids & Family at $28, over three dollars higher than industry average.  Spotify Wrapped is here, including its top podcasts Shreya: Some of you might have noticed a deluge of vibrant colors and boasting about listening habits last Wednesday, as the annual Spotify Wrapped dropped. Kimeko McCoy, writing for Digiday last Thursday, explains how big this yearly infodump has become: “It’s an awareness campaign that utilizes user data to serve up users’ favorite songs, albums and podcasts to be shared across social media platforms via the app, engaging more than 120 million users last year, according to Spotify. This year, Spotify has launched its Wrapped presence in Roblox, with the goal of tapping into an even bigger audience.” What originally started as a year-end recap in 2015 has grown to a marketing event large enough to necessitate a custom presence in one of the most popular online games. Since entering the podcast space, Spotify has also begun publishing a Podcast Wrapped.According to Ariel Shapiro in last week’s issue of Hot Pod, the top five podcasts on Spotify this year are, in descending order: The Joe Rogan ExperienceCall Her DaddyAnything Goes with Emma ChamberlainCaso 63 (in all languages)And, finally, Crime Junkie.  This year only two of the top five podcasts aren’t Spotify exclusives, though one of those two is set to become an exclusive early next year. Only the highly successful Crime Junkie breaks through the blockade of podcasts with strong Spotify ties. Shapiro attributes this to Spotify’s ability to promote in-ecosystem properties like Caso 63 and its English adaptation Case 63, while podcasts that release on multiple platforms have to deal with divided metrics. Anything Goes performs well on Spotify, but it doesn’t necessarily translate to similar performance on Apple Podcasts. While it got third place on Spotify for the year, Shapiro notes Chamberlain didn’t make it into Edison Research's top fifty most-listened-to podcasts report for Q2. From the newsletter: “The list, therefore, tells us more about Spotify’s strategy than it does about the overall market.”  GroupM and Magna’s Global Ad Forecasts Predict A Durable Ad Market Manuela: For our final story today we bring up a bit of good news  n the face of a recession that we’re either already in, or about to enter (depending on who you ask). Hana Yoo, writing for AdExchanger, covered reports from both GroupM and Magna this Monday.  “Global advertising revenue grew 6.5% in 2022 and is projected to grow 5.9% in 2023, according to GroupM’s global year-end industry growth forecast. Meanwhile, Magna’s December global ad forecast predicts 4.8% growth in 2023 after 6.6% growth in 2022.” Yoo notes that these projections are lower than earlier forecasts. Revised versions to meet current numbers, such as Magna’s earlier prediction of a 6.3% growth for next year. Still, as Yoo reports GroupM’s official line is they’re looking at 2023 with ‘conservative optimism.’ From the article: “And Magna is on the same page. Although we’ll likely see “a slight slowdown in advertising revenue growth in an uncertain economic environment,” said Luke Stillman, Magna’s SVP and group director of global market intelligence, growth should reaccelerate during the second half of the year.” In addition to forecasting overall growth, GroupM also anticipates retail media to grow from 101 billion to 110.7 billion in revenue next year. They also note CTV’s particular resilience during COVID and its upward trends, even while paid TV subscriptions slip.  Forecasts for next year aren’t cloudless skies, but they’re also not trending towards thunderstorms just yet. Quick Hits Shreya: Finally, it’s time for our semi-regular roundup of articles we’re calling Quick Hits. These are articles that didn’t quite make the cut for today’s episode, but are still worth including in your weekend reading. This week:  What’s going on in audio advertising? Spotify grows, podcasts go global, and radio is a safe bet, by Shreya Feger for Insider Intelligence. A brief three-point breakdown of insights into the state of audio advertising and predictions for next year. Rephonic analyzed its podcast database to share opportunities for podcasters on Patreon, from last Thursday’s issue of Inside Podcasting. A brief breakdown of Rephonic’s

Just what is a Sounds Profitable DeepDive, and what have they covered this year? What drove Bryan Barletta to create them in the first place?  Read on to find out. Credits: Written by Bryan Barletta Edited by Bryan Barletta Produced with Spooler.fm Hosted with Omny Studio Sounds Profitable theme written by Tim Cameron Sounds Profitable: Narrated Articles is a production of Sounds Profitable. For more information, visit soundsprofitable.com.See omnystudio.com/listener for privacy information.

This week: Samsung Free app issue causes spike in downloads, Transistor joins email spam prevention movement, How streaming TV is bracing for the recession, and Spreaker debuts two new offerings, one of which sounds like a cool robot.  New auto-playing Samsung app spikes downloads. Manuela: Our top story this week, fitting for a holiday weekend, is one of collaboration and teamwork against all odds. Last week Samsung launched the Listen tab on Samsung Free, a media streaming app pre-installed on every Samsung Galaxy smartphone.  When clicked on, the Listen tab would open a full-screen player with a three second timer. If not manually stopped within the three seconds, the app would begin to auto-play segments of featured podcast episodes, with each episode in the queue pre-downloaded for instant play. This auto-downloading and auto-listening lead to podcasters seeing a sudden spike of listens coming from the Dalvik user agent.    Like something out of a heartwarming holiday special, the podcasting community came together on a long weekend to work together and solve the problem. In the Sounds Profitable Partners Slack channels, employees of Audioboom, Triton, Spreaker, and others jumped into threads to discuss how to handle the issue.  James Cridland’s Monday edition of the Podnews segment The Tech Stuff details why a download spike from Dalvik isn’t necessarily an easy fix. Cridland says: “Some podcast hosting companies have blocked the “Dalvik” useragent entirely. However, blocking Dalvik - even with the Samsung model numbers - will also block, among other things, Google News’s audio player, which uses an identical audio useragent. At least one app powered by Podcast Index also uses this generic Dalvik useragent along with PodcastAddict, and Indian podcast app Gaana also retains Dalvik in its useragent.” Luckily, there’s a happy ending to this Thanksgiving story. Multiple employees on a holiday weekend managed to get the attention of Samsung, a company only just now entering podcasting, and get the problem fully solved. According to Podnews reporting, Samsung Free content partner Acast has since demonetized any traffic from the Dalvik user agent, and a fix to the app to prevent any future download spikes is set to be published soon.  What could have been a massive headache for many people was quickly resolved fully without any half-measure bandage fixes, all on a holiday weekend, thanks to the cohesiveness of the community. That we can certainly be thankful for.  Transistor joins email spam prevention movement. Shreya: Back on November 3rd we covered Buzzsprout’s announcement that they were removing email addressed from podcast RSS feeds. Presented as the company ‘fighting back against email spam,’ Buzzsprout only inserts a podcaster’s email address into the feed on request to verify the feed with other services and platforms.   On August 22nd Apple Podcasts announced updates to RSS feed requirements in 2023, including the end of support for the ‘owner’ tag. “The owner tag and its contact information, including email, will no longer be recommended.”  In addition to Buzzsprout embracing the email-free future, Podbean and - most recently -  Transistor have joined the cause. From their blog post this monday:  “Unfortunately, because podcast feeds are public, spammers can scrape these email addresses and use them to send unwanted emails (like pitches for guests to appear on your show).” Meanwhile, yesterday’s Podnews published an alternate take on this move to prevent email spam. The Canadian Podcast Awards told Podnews they neither agree with nor support the removal of email addresses from RSS feeds. From yesterday’s issue:  “We do not have any plans at the moment to support feeds without contact information.” Email spam has become a growing problem in podcasting. Back in July, James Cridland published the results of an email spam-trap he’d created in the Podnews RSS feed. Over the course of three months his experiment received 240 unsolicited commercial emails.   Similarly to Buzzsprout, Transistor has removed email addresses from the feed by default, but include a tool to manually reveal it for verification purposes. In addition, they now have a verification code entry field designed to work with Apple Podcast’s new code-based verification system.  A new verification method that, hopefully, will help ease the concerns of objecting organizations like the Canadian Podcast Awards. How streaming TV is bracing for a recession Manuela: Depending on who you ask, the next recession is either here already or fast approaching. On November 17th Maia Vines, writing for AdAge, published a piece detailing how streaming television is battening down the hatches. From the article: “Brands have already started to re-prioritize where they are placing their ad dollars, said Lisa Herdman, senior VP and executive director of strategic investments at RPA.”  Heather Stewart, General Motors’ general director of global media and marketing services presents a contrasting opinion: she expressed concern advertisers might be talking themselves into a recession with reactions to false indicators.  After over a decade of consumers demanding the death of the traditional model of cable television bundling providers together, the a la carte model has begun to slip as multiple platforms come under control of media conglomerates. Currently Paramount, Warner Bros. Discover, and Disney either already group multiple services into one bundle or are planning on offering one in future.  A proposed path to soothe worries during economic downturn is commerce-enabled TV and interactive ads. Netflix VP of advertising sales Peter Laylor told AdAge: “One thing that I think is a great opportunity is maybe a dual-screen experience, and people have experimented there, but the research shows that the vast majority of people have their phone with them when they're consuming TV streaming content.” Even with new tactics and status-quo breaking experiments like bringing one-click-buy options to streaming TV in US markets, there’s a consistent throughline to how streamers are prepping for a recession: they’re making things simple for the consumer.  A task podcast advertisers have been refining since the format required listeners to manually copy an MP3 file to an iPod.  Spreaker debuts first-party data audience segments, MAGDA brand safety tech. Shreya: Time for a special Spreaker segment, as the platform has made two large announcements while we were gone on holiday break and it’s time to get you up to speed.  Starting on the 17th, they announced a new first-party data for high-impact audience segmentation and targeting solution that is now available for both programmatic and direct sales on the Spreaker network. Martín Haro, Data and Insights Lead at Spreaker says in the press release:  “Now with Spreaker’s first-party data audience segments, our solution ingests data through AI and machine learning from real listeners’ listening patterns, behaviors, and podcast content, which has enabled us to build specific audience segments that have proven to be 3X more accurate than third-party data.” Then, yesterday, the platform followed up with a brand new tech with a cool name: “Spreaker, the global leader in programmatic ad tech, today announced its first-to-market M.A.G.D.A technology to increase quality in programmatic advertising. This unprecedented technology is set to transform programmatic podcast advertising, adding a layer of control to protect content creators.”  In addition to sounding like a cool robot sidekick from an 80s movie, M.A.G.D.A bridges a gap in brand safety and suitability. Advertisers are well-covered on their end, now Spreaker can provide an extra layer of protection from the publisher side.  Blocking IAB categories to avoid certain kinds of advertisements works pretty well, at least until a campaign is mis-categorized. Spreaker has now solved for that. From the press release:  “M.A.G.D.A technology works by transcribing programmatic ads that go through the Spreaker ad marketplace in real-time. Spreaker has created machine-learning models to auto-categorize ads. In addition, the technology can also detect miscategorized ads. For example, if a political ad is miscategorized as fast food M.A.G.D.A will flag this for rectification.”  What does the M-A-G-D-A stand for? The name serves a dual purpose. First, it stands for Machine Augmented Guard for Dynamic Advertising. Spreaker explains:  “However, Magda is also a member of the Spreaker team. She was the first person to work on ad quality control for th

Multitude Productions has an impressive array of podcasts, resources, events, and more going for them. In this episode, Bryan Barletta speaks with Multitude CEO Amanda McLoughlin about building the company, how they handle relationships with advertisers, scaling, and so much more. Listen to learn about: (5 bullet points) Why Amanda believes CPA ads are a win-win The Multitude Podcasting Conference How Amanda and team build engaged audiences Why Multitude can’t scale tenfold (but maybe that’s a good thing) Links: Bryan Barletta Arielle Nissenblatt Amanda McLoughlin Multitude Productions The Download Sounds Profitable: Narrated Articles SquadCast Credits: Hosted by Bryan Barletta, Arielle Nissenblatt Sounds Profitable Theme written by Tim Cameron Additional support from Gavin Gaddis Compiled by: Spooler Media Edited by: Reece Carman and Ron Tendick Hosted on: Omny Studios See omnystudio.com/listener for privacy information.

This week, Bryan comes at things from a different perspective, specifically that of the ways that the podcaster and audience interact. From how we convert a follow to a subscriber, to weighing and prioritizing each subscription solution from both the podcaster and listener perspective, and most importantly to exploring the upper limits of what we can accomplish under a subscription offering. Credits: Written by Bryan Barletta Edited by Bryan Barletta Produced with Spooler.fm Hosted with Omny Studio Sounds Profitable theme written by Tim Cameron Sounds Profitable: Narrated Articles is a production of Sounds Profitable. For more information, visit soundsprofitable.com.See omnystudio.com/listener for privacy information.

This week on the Sounds Profitable Deep Dive, Bryan Barletta is joined by SoundStack CEO Jon Stephenson to embark on a three-part journey through what the audio-as-a-service company has to offer. Tune in to learn how the SoundStack platform makes podcast hosting/distribution, broadcast-to-podcast, and monetization really simple. Credits: Written by Bryan Barletta Edited by Bryan Barletta Produced with Spooler.fm Hosted with Omny Studio Sounds Profitable theme written by Tim Cameron Sounds Profitable: Narrated Articles is a production of Sounds Profitable. For more information, visit soundsprofitable.com.See omnystudio.com/listener for privacy information.

This Week: Apple Podcasts is using machine learning to tag episodes, IAB to require annual recertification, Edison Research shares Share of Ear Q3 statistic, and Headliner announces automated YouTube integration. Bumper Discovers Apple Podcasts Assigns Topics Automatically. Manuela: This Tuesday Bumper co-founder Dan Misener posted a new discovery that explains how Apple Podcasts can recommend individual podcast episodes based on topics discussed. The example Misener uses is an episode of Today, Explained which, if one opens the web page source on Apple Podcasts, is tagged with twenty topics ranging from broader concepts like ‘world politics’ to individual names of celebrities and politicians mentioned in the episode. The catch? Those keywords and topics do not appear anywhere in the episode description or RSS feed. The only way to assign them to that particular episode is a transcript. From the article:  “Here’s my best guess: Apple is using machine-generated transcriptions, then applying natural language processing techniques like topic modeling to generate lists of relevant topics on an episode-by-episode basis.” According to Misener’s reporting, the current top 250 podcasts on Apple Podcasts consists of 70,094 episodes. Approximately 63.5% of those episodes are currently tagged with topics generated by Apple.  “Here’s my best guess: Apple is using machine-generated transcriptions, then applying natural language processing techniques like topic modeling to generate lists of relevant topics on an episode-by-episode basis.”The topics are also ranked with a per-episode relevance score and appear to be integrated into the Apple Podcasts search function. Misener tested this by searching the phrase ‘war in Donbass,’ which he had seen as a tag on Today, Explained. Apple Podcasts returned an episode of The Inquiry that discusses the issue at length, but also does not specifically include those keywords in the title or description. This suggests the assigned topics influenced its search ranking. As Misener says in his breakdown of what this means for podcasters, the implications of this automated topic system are numerous and all signal better relevancy in podcast discovery. SEO now goes far beyond what they chose to include in RSS feeds. In response to the Bumper article, https://podnews.net/article/apple-topics. Visitors can type in the name of a podcast and choose one of the 20 most recent uploads to see what topics Apple has assigned. That is, if it has been assigned any at all. Unfortunately the Sounds Profitable feed has not been fed through their machine learning, so we don’t know what Apple thinks last week’s episode of The Download is about.  IAB to require annual recertification.  Shreya: Last Thursday Podnews reported the Interactive Advertising Bureau is now requiring annual re-certification from podcasting companies. The information came from a note Podnews editor James Cridland discovered on the IAB website. https://iabtechlab.com/standards/podcast-measurement-guidelines/“As podcast listenership increases and the technology to support that listenership improves, the podcast technical measurement capabilities are continuing to evolve at a rapid pace. As such, and to be aligned with other industry auditing programs, IAB Tech Lab is updating its compliance program to require annual recertification. “ The post then cites the fact several complaint companies were certified on the 2.0 version of the standards but have not re-certified under 2.1. As of this podcast https://iabtechlab.com/compliance-programs/compliant-companies/#\ For context: version 1 of the Measurement Technical Guidelines was released in September of 2016. Version 2.0 released the following September. Version 2.1 released five years later, finalizing in February of 2022. The bulk of the updates in 2.1 involve guidelines blocking the Apple Watch user agent to prevent duplicate download stats. Members of the audio committee and the tech lab were not briefed on the upcoming changes prior to Cridland’s reporting on this story. Using numbers available on the IAB website, the original Podnews report cited the cost for annual recertification at $45,000, split between a $35k certification fee and $10,000 annual membership fee. The page has since been updated to reflect previously un-announced, cheaper certification prices. Now the cost of initial certification is $17,500 for non-members and $12,500 for members. Recertification will cost $8,750 and $6,250 for the same respective categories.  Reducing the price for certification is a step in the right direction, creating more competition and reinforcing standards that others are likely to flaunt when compared against those who decide to merely be IAB compliant instead of IAB certified.An issue remains the recertification itself, as the process has had a life cycle of six years between 2.0 and 2.1 with no commitment whatsoever to improvements in the certification process to drive interest into certification. Third party solutions like Podtrac have been shown to receive special accommodations that allow them to uphold questionable behaviors. The most recent example of such behavior being Podtrac’s honoring of downloads for iHeartRadio podcasts generated by auto-playing web players into video game ads, classifying them as legitimate.  Going forward, we hope the IAB standard is applied consistently, updated with more regularity, and accessible to as many companies in the space as possible. Podcast reach with people 13+ growing, Share of Ear shows.  Manuela: Last Thursday Edison Research published https://www.edisonresearch.com/weekly-insights-11-10-22-the-steady-climb-of-podcastings-reach-in-the-u-s/r that shows good news for the growth of podcasting. The issue of Weekly Insights opens with fond recollections of Cliffhanger, a popular price-guessing game segment on the game show The Price is Right. The game featured a model of a mountain climber making his way up a cartoon mountain based on correct or incorrect bids made by the contestant.  A mountain not unlike the positive trending growth represented in the graph  “In 2014, the first year of the Share of Ear survey, podcasts reached 5% of those in the U.S. age 13+. As of our most recent data, Q3 2022, podcasts now reach 18% of those age 13+ in the U.S. — a 20% increase in the past year (Q3 2021), and over three times the reach of 2014. The years in between show a steady growth in reach. There have been some fluctuations in podcast reach from quarter to quarter as we saw the beginning and end of quarantine restrictions, but this graph that shows the climb of podcast reach should be encouraging for the podcast community.”  Headliner Releases YouTube Auto-Upload Shreya: This Monday the Headliner blog posted a video and short article https://www.headliner.app/blog/2022/11/14/upload-your-entire-podcast-to-youtube/ “YouTube has become one of the hot ticket items in podcasting, and for good reason. Each month over 2.6 Billion people go to the site and watch videos. YouTube is a great place to get your podcast in front of new audience and increase your listenership. If you want to get your podcast on YouTube, but have a bunch of older episodes that you’d like to upload, this feature will save you tons of time.”  In addition to Headliner’s normal offerings that allow podcasters to generate animated video clips for social media from their podcast audio, Headliner subscribers at the Pro and Enterprise level can now create a template that will then automatically generate a full-episode video and upload it to the podcast’s YouTube channel. This automation comes at the perfect time as YouTube pushes its interest in podcasting and podcasters, small and large, comes to terms with sizable backlogs of audio-only content.  Fundraiser Roundup Manuela: Occasionally when there have been a few stories involving fundraising in podcasting and podcasting-adjacent companies, we graduate them from Quick Hits into their own small segment. Today we have two success stories to round out our coverage of news from the past week: Last Wednesday Swedish audiobook and ebook subscription service https://podnews.net/press-release/audion-funding,  equivalent to 37 million US dollars.  Then, on this Tuesday, French digital audio and podcast monetization startup https://news.cision.com/storytel/r/storytel-has-completed-a-directed-share-issue-to-existing-and-new-investors-and-thereby-raises-gross,c3664632 Quick Hits Shreya: Finally, it’s time for our semi-regular roundup of articles we’re calling Quick Hits. These are articles that didn’t quite make the cut for today’s episode, but are still worth including in your weekend reading. This week:  https://twitter.com/BenMullin/status/1590775278023970887A tweet from New York Times reporter Ben Mullin last Tuesday announced the Gimlet Media and Startup star has left Spotify, where he has worked on Gimlet since its $230 million dollar acquisition in 2019.

Podcasts and Audiobooks are crossing the streams of spoken word content - what else is possible? This week, Tom Webster looks at ideas for hybrid non-fiction content that could open up whole new sources of revenue. Credits: Written by Tom Webster Edited by Tom Webster Produced with Spooler.fm Hosted with Omny Studio Sounds Profitable theme written by Tim Cameron Sounds Profitable: Narrated Articles is a production of Sounds Profitable. For more information, visit soundsprofitable.com.See omnystudio.com/listener for privacy information.

This week: Why sports podcasts are a slam dunk for podcast advertisers, our quarterly earnings roundup, how the buy-side of advertising defines ‘premium’ content, how podcast advertisers are embracing Latino podcasting, and Netflix launches their ad-supported tier. Why sports podcasts could be a slam dunk for advertisers who know how to navigate the in-demand space Shreya: There’s no denying the synergy of sports and advertisers during regular game seasons, but a new article from MarketingBrew’s Alyssa Meyers highlights how podcasts can easily fill that gap the rest of the year.  “The sports podcast genre is among the top five most popular in the US, according to Edison Research, and the percentage share of ad revenue for that category more than doubled from 2020 to 2021, according to the Interactive Advertising Bureau.”  Several of Meyers’ sources stress that sports is one of the most in-demand podcast genres for ad buyers. Steven Abraham, president of the Oxford Road, said the agency’s biggest clients are interested in the space due to its reach with an active and engaged audience. “A good sports-podcast media plan includes both, according to Abraham. Major shows that cover entire leagues or sports news in general can provide the benefit of reach, but fan-led shows that focus on specific teams tend to be more targeted and affordable, he said.” Regardless of a show’s popularity, the CPM of a sports podcast has the benefit of flexibility even in the off season. Locked On Podcast Network CEO David Locke reports listenership spikes more during off-season times like trade deadlines than during important games during the normal season.  Traditional media has spent decades refining their infrastructure around courting sports fans when players are on the court. Podcasting has the flexibility and staying power to capitalize on sports fandom’s dedication for their favorite pastime and make sporting content a perennial avenue for advertisers.  Podcasting Companies Post Q3 Earnings Manuela: It’s time for what’s becoming a quarterly event here on The Download: quarterly earnings reports are here!  Most of what we’re reporting on today has been released in the past week, but in the interest of gathering everyone together, we’ll open with Spotify. As we covered back in October, Spotify shares dipped after their earnings call, in which CEO David Ek announced price increases coming in 2023.  In good news for Big Green: they report 456 million monthly active users, up 20% year over year, 195 million of which are paying subscribers, representing a 13% year over year jump.  iHeartMedia is up 7% year over year on revenue, with a Q3 total of $989 million. Their Digital Audio Group revenue hit a 23% year over year increase, with podcast revenue hitting $91 million dollars.  On Wednesday Veritone posted their Q3 financial report. $37.2 million in revenue with 64% year over year growth.  Audacy’s financial report shows total revenue down 3.8% year on year. Their Digital revenue, including podcasting, made $62 million in the quarter. As Podnews James Cridland reports, this is up 2% year on year but 10% down quarter on quarter. Cridland also said: “The company is threatened with stock market delisting; stock hit a record low of $0.27 yesterday.”  Acast’s Q3 has been positive with revenue up 21%, amounting to $29.8 million USD when converted from Krona. In their significant events recap they list the Podchaser acquisition, the partnership with Wondery to translate and record successful podcasts in Italian, and their agreement with rep The New York Times and sell UK ad space on NYT podcasts.  They also note Amazon functionally purchasing all ad space on Acast podcasts through the deal struck just after the reporting period so Amazon can run Acast shows ad-free for Amazon Music subscribers. How the buy-side of the ad industry is now defining ‘premium’ content  Shreya: On Wednesday Ronan Shields, writing for Digiday, published a piece covering how the buyer side of the market is defining premium ad content and the general mood of the industry in regards to the looming threat of recession. The piece quotes panels from multiple relevant conferences in New York City last week.  “Just about everyone in the industry is bracing themselves for a recession with swinging cuts to advertisers’ budgets expected, fellow panelists Jesse Fisher from Horizon Media and GroupM’s Esra Bacher offered insights into how marketers would make budgeting decisions. They both pointed out how priorities will delineate depending on whether they are an emerging or mature brand.”  Fischer predicts smaller brands will focus more on awareness campaigns instead of focusing on ROI. “But if you look at a more mature brand, you know that’s really well positioned… they might shift spend into more measurable channels and types of activations because they really want to make sure that if they’re spending a million dollars, they’re able to see $1.1 million in ROI.” Programmatic Investment Lead at GroupM Esra Bacher suggests marketers and media agencies have evolved enough to withstand the brunt of an anticipated economic downturn better than the 2008 recession that lead to sweeping cuts. While DSPs and premium publishers are using tools like The Trade Desk’s OpenPath to form direct relationships, media agencies are similarly getting together with supply-side platforms. An anonymous source at Brand Safety Week told Digiday:  “It’s not possible for us to talk to 10,000 publishers, but it is possible for us to talk to 50 SSPs. So, we might look to see how much we’re spending with, say, 10-15 publishers via DSPs, and then look to see which SSPs have unique supply, unique data… and transparency on things like show-level data…” Podcast listening by US Latinos is on the rise. Are ad dollars following suit? Manuela: Back in August the third annual Latino Podcast Listener Report from Edison Research was published, as dedicated listeners might remember from our coverage. The report delivered promising news, including the statistic that 59% of US Latino adults have listened to a podcast at least once.  This past Wednesday Alyssa Meyers, writing for MarketingBrew, covered both the highlights of the report and how the podcasting industry is adjusting to the rise in Latino audiences.  Latina Podcasters Network and Latino Pods CEO Rita Bautista says their stable of 40+ podcasts  broke six figures in ad revenue so far in 2022, working with brands like Ulta Beauty, Pfizer, and Gold Peak. The network does not run prerecorded ads, preferring host-read copy to ensure authenticity.  “There’s absolutely a lot of interest in the Hispanic opportunity by many advertisers,” said Jesus Lara, president of Univision Radio, including its Uforia Audio Network. “There’s other advertisers that will need a little more education.” Lara stressed that authenticity has to be paramount when building ad creative. Ad Results Media VP of media operations and analytics Lisa Jacobs says she advises brands to only write copy in another language if they have someone fluent around to work on the translation. Jacobs told MarketingBrew this might seem self-explanatory, but there have been situations in the past where someone used Google Translate to try and convert copy to another language.  Bautista says she’s seeing brands follow the advice of people like Jacobs, though there is room to grow.  “The needle is moving. It’s not moving as quickly as it needs to be, but…I do commend these companies that we've been working with for trying their best, and making sure that they are working on these efforts, and asking for feedback, and looking towards the right types of networks to advertise with in order to get this right.” Brands advertising on Netflix include Louis Vuitton, Subway, and Duracell Shreya: Previously we’ve covered Netflix’s moves into making its cheapest tier an ad-supported one. Last week the platform officially launched the tier, charging $6.99 for ‘Basic with Ads’ in the US, as well as eight other countries. MarketingBrew’s Kelsey Sutton reports the ad loads are capped at four to five minutes of advertising per hour and the formats are pre-roll and mid-roll.  Sutton and others from MarketingBre